Institutional Portfolio Manager Ilan Kolet joins us on the program and walks us through the inflation story, the resiliency of the market, and how the Canadian consumer is faring in this current market environment. Ilan is part of Fidelity’s Global Asset Allocation team. He says the team expected to see stress in the Canadian economy but that does not seem to be the case. The Canadian Household has also been more resilient than the team would have expected. He says two major things have contributed to the sustainability of the Canadian Consumer – excess savings built up during the pandemic and generational transfer of wealth. But the question remains – when will this cushion of savings run out? The GAA team predicts the middle of 2024. Ilan looks ahead to the Bank of Canada’s upcoming rate announcement and believes until the BOC sees cooled housing, spending, and employment, we can expect further rate hikes. He also gives an overview of the team’s asset allocation – adding that they continue to be underweight Canadian and US equities and overweight international and emerging markets. On the bond side, they are underweight investment grade, overweight credit and spread factors and of course, inflation protected bonds.

Recorded September 5, 2023.

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